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Accounting Setup

Here you can find information on setting up tax for your branch, as well as assigning Sales Codes to jobs

Sam Linge avatar
Written by Sam Linge
Updated over a week ago

PLEASE NOTE: As of April 1st 2023, the setting for Charge Via Tutor will be removed from the platform. If you want to continue to calculate tax on the commission of lessons, then you can utilize our setting for Split Payments which you can read more about here.

How do I change the tax setup?

Tax setups can be changed under System > Settings > Accounting Settings > Tax Setups. You can either edit one of the default tax setups or add a new one by clicking the 'Add Tax Setup' button. Enter a name and rate, and select the 'Taxable' box if you wish for the tax to be used, then click 'Submit'. This tax will then be viewable when creating or editing a job in 'Commission Tax' and 'Tutor Tax' under 'Accounting Settings'. Here you can also set whether the rates on a job are tax exclusive (GROSS) or tax inclusive (NET) in 'Tax Setting'.

You can also select the default tax on tutors and commission by navigating to System > Settings > Accounting Settings > Tax Setups and clicking one of the edit icons below. Select your tax setups and click 'Save'. Your chosen tax setup will then be used as the default on jobs.

Select your tax setups under 'Accounting Settings'.

What's the does "charge via tutor" mean, and how is that different?

Charging via the tutor refers to the practice where, if you are acting as an employment agency, you can charge your clients on behalf of your tutors. This means you're sending the invoice on behalf of the tutor, collecting money on their behalf, and then sending them the amount they are owed. In some regions, this allows an agency to pay tax on the commission that the agency is receiving, rather than the full amount charged to the client.

Though this used to be used by some UK based agencies, a 2020 High Court Ruling declared this practice illegal. If you are a UK based company, then we would recommend that you do not check this box. Instead, use TutorCruncher's Split Payments feature.

If you are in a region where this practice is accepted, then we would recommend checking with your accountant or a tax specialist to see if it's correct for your model. This can be set in System > Settings > Accounting Settings > General by selecting the 'Charge via Tutor' box.

Select 'Charge via Tutor' in your Accounting settings.

Is TutorCruncher compatible with accounting packages?

TutorCruncher’s accounting is compatible with accounting packages like Xero, Quickbooks and Sage. Accounting data from within TutorCruncher can be exported in CSV format, that can then be imported to other accounting programmes.

What are Sales Codes?

Sales codes are used in conjunction with Xero to categorise items on invoices into various accounts. For instance, 802 could be the account that the tutor payment comes out of. If you are not using Xero as your accounting package you can still use Sales Codes to categorise Lessons and Ad Hoc Charges, you will be able to view them when you use the detailed accounting export.

How do I change my sales code?

Sales codes are used for integration with Xero and other accounting packages. Sales codes can be changed under System > Settings > People. You can either edit one of the default sales codes or add a new one by clicking the 'Add Sales Code Group' button. Enter a description and a number for each code, then click 'Submit'. This code group will then be viewable when creating or editing a job in 'Sales Codes' under 'Accounting Settings'.

Why can’t I change the sales code on a job?

If there are custom fields that apply to that job, then information would need to be entered into those fields before you can make changes to the Sales Codes.

Why can't I see certain sales codes?

If you do not have affiliates turned on within your TutorCruncher account you will not be able to view the sales codes associated with them. You can switch on affiliates within System > Settings > Accounting Settings > General

Tutor sales codes will also not be displayed unless you have Charge Via Tutor switched on. Since the TutorCruncher tutor sales code is used to feed into direct wages codes via Xero and other accounting software, if you are not using Charge Via Tutor this is not a feature you will need to use within your accounting.

How do I change my currency?

Under System > Settings > Accounting Settings > General, you have an option for currency.

If this option is not available to you then you may have already processed some invoices on this account using the original currency. If that's the case, please get in touch with the TutorCruncher support team. We'll probably recommend creating a new branch (ie. subaccount) for you in the new currency, or setting up a new agency account.

How do I change the prefix/suffix of my invoice/payment order/receipt PDFs?

You can change the messages on your accounting PDFs by navigating to System > Settings > System Customization > PDFs. You will see a number of default fields you can edit including 'Invoice statement prefix', 'Payment order page suffix', 'Receipt summary prefix', etc. Edit your messages and click 'Submit'. Any new PDFs you create of that document type will use your custom messages, older documents may not be updated.

Why isn't my charge via tutor tax setup working?

There are a number of reasons why Charge Via Tutor (CVT) may not be working on your TutorCruncher account. Below, you can find a useful list of things to check in order to troubleshoot the issue:

  1. Have you got Charged Via Tutor Switched on? Go to System > Settings > Accounting and check that the ‘Charge Via Tutor’ checkbox is selected.

  2. Are you paying the tutor(s) more than you are charging the client(s)? Go to the job you are trying to bill and make sure that the client charge rate is higher than the amount paid to the tutor. If the tutor is being paid more than the client is being charged, then CVT will not work. Please note: for group classes the sum of all client payments has to be higher than the sum of all tutor pay.

  3. Have you got ‘charge via branch’ selected on the tutor's profile? When the CVT tax setting is switched on this will become the default for all tutors, however, someone could have switched this setting on in the past, and this may be causing issues. Go to People > Tutors, and select the tutor you are trying to invoice for. Click ‘Edit’ and check that under Accounting the ‘Charge Via Branch’ is not selected.

  4. Are your default commission tax rates set to a percentage? Go to System > Settings > Tax Rates and make sure commission tax is set up as 0%.

  5. Have you got your tutor tax rate set to 0%? Go to System > Settings > Tax Rates and make sure that ‘Tax on Tutors’ is set to ‘No Tax, 0%’

  6. Are your default tax rates set correctly on jobs? Check that under Activity > Jobs, the job you are trying to bill has its tax set up to a tax percentage other than 0%.

  7. Have you got the correct tax set up on your client’s account? Go to People > Clients and select the client you are trying to invoice. Click ‘Edit’ and check that under ‘Accounting & Client Manager’

  8. Have you got the Tax rate set to the default on the tutor’s profile? Go to People > Tutors and select the tutor’s profile who you are trying to invoice for. Make sure that under ‘Accounting’ you leave the Tax set-up blank. This way the set up will be the same as the account default.

Please note that after changing any of these options you will need to regenerate your invoices to update them.

Can I edit the tax settings on an individual client?

Yes, you can select whether or not tax should be paid on payments from the client, and if they should be charged via the branch. You can edit these by navigating to the client's profile and clicking the ‘Actions’ tab. From here, you can go to the ‘Accounting & Client Manager’ section. Enable the appropriate fields and then click submit.

I have some clients who are non-taxable, how do I reflect this in TutorCruncher?

When editing a clients profile, there is a checkbox for ‘Taxable’ just under the section for ‘Accounting & Client Manager’. This will reflect whether or not tax should be paid on payments from the Client.

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